Heatwave compounding costs of EPA “trainwreck”
One section of an August 4 Platts Energy week article reveals the added stress that EPA regulations are causing for the nation’s utilities.
Mother Nature can oftentimes make life difficult for generators; the current heatwave is the perfect example. However, when utilities are already under undue stress from regulatory demands, the natural pressures are only amplified.
While forward prices’ upward trend last month could be attributed to the Environmental Protection Agency’s Cross-State Air Pollution Rule announcement, more recent increases are directly attributed to the pervasive heat, said a financial source who studies the ERCOT market but asked to remain anonymous.
“The current conditions with hitting new peaks and weather have driven things up,” the source said.